Your Guide to Buying Auto Insurance

Driving Without Auto Insurance

Uninsured Motorist Penalties

The penalty for driving without insurance will vary between states. If you are uninsured and continue to drive uninsured, your tags will not renewed and your car can be seized and impounded. There are also heavy fines for those who drive without having car insurance. In California, (California Vehicle Code Section 16029) allows for fines up to $500 plus penalties, impoundment of your car, and your driver's license being suspended.

Having an Accident Uninsured

If you are involved in an at-fault accident and do not have insurance, you may be responsible for any injuries, damages, and civil or criminal legal defense fees. Imprisonment can also result.

Finding You Are Uninsured

SB 1500 which requires California insurers to electronically transmit insurance verifications to the Department of Motor Vehicles and it directs the DMV to notify a vehicle owner if the vehicle is not insured.

After January 2006, each insurer electronically reports all car insurance liability policies in 30 days of the effective date of coverage. More importantly, all terminations of a car insurance policy or any change of information within 45 days.

SB 1500 established the Vehicle Registration Suspension Program for registered car owners who:

- Don't to provide evidence of financial responsibility within 30 days after getting a car registration
- Don't maintain liability insurance coverage
- Provide false or counterfeit evidence of financial responsibility

Some risk takers will say "If I drive without insurance and get busted once per year, that's $500.00 so I am ahead." Not even close. Auto Insurance is an exchange, you are getting "protection" in exchange for your premiums. You will be getting fined and possibly lose your license and all without protections afforded insured drivers. If you get into an accident, you could lose much more than you ever saved by skimping on your auto insurance.

Let's say you are in an accident, and someone else runs into you. They claim they had the right of way. Their insurance company refuses to pay for any damages to your car or medical expense to you. You are served legal papers by the insurance company lawyer who is filing a lawsuit against you for damage to their customer. The legal fees alone, regardless of who wins the case could be extraordinary.

There are many reasons to keep your auto insurance in force, no good ones to cancel. The reward, a small amount of money you may save on premiums, does not justify the much larger penalties. Buy your State's minimum level of coverage if you must, but do not drive around uninsured.